E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-28T12:14:04+00:00Predicting the Demand for Central Bank Digital Currency: A Structural Analysis with Survey Data
https://www.bankofcanada.ca/2021/12/staff-working-paper-2021-65/
How much of a CBDC would Canadian households want to hold, and what design features of a CBDC would they care about?2021-12-20T10:17:03+00:00enPredicting the Demand for Central Bank Digital Currency: A Structural Analysis with Survey Data2021-12-20Central bank researchDigital currencies and fintechStaff Working Paper 2021-65https://www.bankofcanada.ca/wp-content/uploads/2021/12/swp2021-65.pdfStaff Working Paper 2021-65Jiaqi LiDecember 2021EE5E50E58Central Bank Digital Currency and Banking: Macroeconomic Benefits of a Cash-Like Design
https://www.bankofcanada.ca/2021/12/staff-working-paper-2021-63/
Should a CBDC be more like cash or bank deposits? An interest-bearing, cash-like CBDC not only makes payments more efficient but also increases total demand. This has positive effects on other transactions, inducing more deposit taking and lending and, thus, bank intermediation.2021-12-17T15:06:29+00:00enCentral Bank Digital Currency and Banking: Macroeconomic Benefits of a Cash-Like Design2021-12-17Digital currencies and fintechMonetary policyMonetary policy frameworkStaff Working Paper 2021-63https://www.bankofcanada.ca/wp-content/uploads/2021/12/swp2021-63.pdfStaff Working Paper 2021-63Jonathan ChiuMohammad DavoodalhosseiniDecember 2021EE5E50E58Revisiting the Monetary Sovereignty Rationale for CBDCs
https://www.bankofcanada.ca/2021/12/staff-discussion-paper-2021-17/
One argument for central bank digital currencies (CBDCs) is that without them, private and foreign digital monies could displace domestic currencies, threatening the central bank’s monetary policy and lender of last resort capabilities. I revisit this monetary sovereignty rationale and offer a wider view—one that considers a broader set of currency functions and captures important cross-country variation.2021-12-17T14:28:05+00:00enRevisiting the Monetary Sovereignty Rationale for CBDCs2021-12-17Debt managementDigital currencies and fintechExchange rate regimesFinancial stabilityMonetary policyStaff Discussion Paper 2021-17https://www.bankofcanada.ca/wp-content/uploads/2021/12/sdp2021-17.pdfRevisiting the Monetary Sovereignty Rationale for CBDCsSkylar BrooksDecember 2021EE4E41E42E5E52E58HH1H12H6H63Monetary Policy Spillover to Small Open Economies: Is the Transmission Different under Low Interest Rates?
https://www.bankofcanada.ca/2021/11/staff-working-paper-2021-62/
Does the transmission of monetary policy change when interest rates are low or negative? We shed light on this question by analyzing the international bank lending channels of monetary policy using regulatory data on banks from four small open economies: Canada, Chile, the Czech Republic and Norway.2021-11-30T09:13:09+00:00enMonetary Policy Spillover to Small Open Economies: Is the Transmission Different under Low Interest Rates?2021-11-30Financial institutionsInternational topicsMonetary policy transmissionStaff Working Paper 2021-62https://www.bankofcanada.ca/wp-content/uploads/2021/11/swp2021-62.pdfStaff Working Paper 2021-62Jin CaoValeriya DingerTomás GómezZuzana GricMartin HodulaAlejandro JaraRagnar JuelsrudKarolis LiaudinskasSimona MalovanáYaz TerajimaNovember 2021EE4E43E5E52E58FF3F34F4F42GG2G21G28Optimal Monetary Policy According to HANK
https://www.bankofcanada.ca/2021/11/staff-working-paper-2021-55/
We study optimal monetary policy in an analytically tractable Heterogeneous Agent New Keynesian model. In the model, the central bank has an incentive to reduce consumption inequality in addition to keeping economic activity at its efficient level and inflation stable.2021-11-05T10:10:33+00:00enOptimal Monetary Policy According to HANK2021-11-05Economic modelsMonetary policyStaff Working Paper 2021-55https://www.bankofcanada.ca/wp-content/uploads/2021/11/swp2021-55.pdfStaff Working Paper 2021-55Sushant AcharyaEdouard ChalleKeshav DograNovember 2021EE2E21E3E30E5E52E6E62E63Evaluating the Effects of Forward Guidance and Large-scale Asset Purchases
https://www.bankofcanada.ca/2021/11/staff-working-paper-2021-54/
I propose a novel method to identify and estimate the macroeconomic effects of forward guidance and large-scale asset purchases (LSAP) for each FOMC announcement. I find that LSAP is more important than forward guidance in influencing output and inflation. LSAP puts upward pressure on short-term yields, so it should always be used in conjunction with forward guidance.2021-11-04T14:23:41+00:00enEvaluating the Effects of Forward Guidance and Large-scale Asset Purchases2021-11-04Business fluctuations and cyclesCentral bank researchEconometric and statistical methodsInterest ratesStaff Working Paper 2021-54https://www.bankofcanada.ca/wp-content/uploads/2021/11/swp2021-54.pdfStaff Working Paper 2021-54Xu ZhangNovember 2021EE5GG0What to Target? Insights from a Lab Experiment
https://www.bankofcanada.ca/2021/10/staff-working-paper-2021-53/
In a laboratory experiment, we ask participants to predict inflation using three different policy regimes: inflation targeting—with and without greater communication of the target—average inflation targeting and price level targeting. We use participants’ predictions to compare the level and stability of inflation under each regime.2021-10-28T11:10:52+00:00enWhat to Target? Insights from a Lab Experiment2021-10-28Inflation targetsMonetary policy communicationsMonetary policy frameworkStaff Working Paper 2021-53https://www.bankofcanada.ca/wp-content/uploads/2021/10/swp2021-53.pdfStaff Working Paper 2021-53Isabelle SalleOctober 2021CC9C92EE3E31E5E52E7Fiscal and Monetary Stabilization Policy at the Zero Lower Bound: Consequences of Limited Foresight
https://www.bankofcanada.ca/2021/10/staff-working-paper-2021-51/
How do outcomes of monetary and fiscal stabilization policies at the zero lower bound change when decision makers have finite planning horizons in the economy? We explore the effects of limited foresight on policy tools and the interaction between monetary and fiscal policy.2021-10-18T11:20:28+00:00enFiscal and Monetary Stabilization Policy at the Zero Lower Bound: Consequences of Limited Foresight2021-10-18Business fluctuations and cyclesCentral bank researchFiscal policyMonetary policyStaff Working Paper 2021-51https://www.bankofcanada.ca/wp-content/uploads/2021/10/swp2021-51.pdfStaff Working Paper 2021-51Michael WoodfordYinxi XieOctober 2021EE5E52E6E63E7The impact of the Bank of Canada’s Government Bond Purchase Program
https://www.bankofcanada.ca/2021/10/staff-analytical-note-2021-23/
We assess the response of Government of Canada bond yields to the Bank of Canada’s initial announcement of the Government Bond Purchase Program (GBPP) as well as to the Bank’s later GBPP purchase operations.2021-10-15T10:00:10+00:00enThe impact of the Bank of Canada’s Government Bond Purchase Program2021-10-15More Money for Some: The Redistributive Effects of Open Market Operations
https://www.bankofcanada.ca/2021/09/staff-working-paper-2021-46/
I use a search-theoretic model of money to study how open market operations affect the conduct of monetary policy and what this means for households along the wealth distribution. In the model, households vary in the size and composition of their portfolios, which in turn implies that they may be unevenly affected by open market operations.2021-09-29T14:21:05+00:00enMore Money for Some: The Redistributive Effects of Open Market Operations2021-09-29Inflation and pricesMonetary policyMonetary policy implementationMonetary policy transmissionStaff Working Paper 2021-46https://www.bankofcanada.ca/wp-content/uploads/2021/09/swp2021-46.pdfStaff Working Paper 2021-46Christian BustamanteSeptember 2021EE2E21E3E32E5E52